QUESTION Dear Mr. Old Man, What happens when second beneficiary submits complying document but first beneficiary fails to submit complying documents and the applicant refuses to accept the documents and so also goods and does not release payment? Does it mean even the second beneficiary loses right to receive payment under LC? Regards, Subhash ———- ANSWER Hi, Good question! It …

QUESTION Hi Mr. Old Man, If a LC is issued available with a nominated bank by negotiation and draft drawn on issuing bank, can the nominated bank just negotiate (purchase) the complying documents without negotiating the draft so as to qualify for negotiation with recourse? I understand once the nominated negotiated the draft, then it is bound to negotiate without …

(Quoted from DC-PRO Discussion Forum 21-28 Jan, 2016) The discussion focuses on UCP 600 sub-article 14 (k), which says “The shipper or consignor of the goods indicated on any document need not be the beneficiary of the credit”. Antoine (Lebanon) The shipper on any document presented need not be the beneficiary of the credit according to art 14 k. But …

QUESTION Hi Mr. Old Man: Thanks for your reply. Can an issuing bank actually issue a LC available with nominated bank by acceptance with draft drawn on reimbursing/confirming/issuing bank/other named banks? I am asking this question because I understand the term “acceptance” as to mean the issuing bank authorizes the nominated bank to accept draft. If a draft is drawn …

QUESTION Dear Mr. Old Man, I am a frequent follower of your blog whose posts are very helpful for my work as a trade finance specialist. I have a case regarding LC number and date in transport documents as follows: I see that LC would require all documents including transport documents to indicate LC number and date. However, sometimes shipment …

QUESTION Dear Mr. Old Man, I have a case relating notify party in bill of lading. LC requires:  Full (3/3) set of originals clean shipped on board … and notify the applicant with full name and address. LC applicant: MKH CO.,LTD …….. DIEN BIEN PHU STREET, HO CHI MINH CITY, VIETNAM Bill of Lading presented shows two notify parties as follows: Notify …

QUESTION Dear Mr. Old Man, I have two cases that need your comments: Case 1: LC requires presentation of insurance policy/certificate in one original and one copy. The presenter presents one original and copy of insurance certificate. However, the insurance certificate presented indicates 2 originals issued. Can we raise the discrepancy “Insurance certificate: Only one instead of two originals presented”? …

QUESTION Dear Mr. Old Man, I have a case regarding invoice as follows: LC stated that: SIGNED AND STAMPED COMMERCIAL INVOICE ISSUED BY THE BENEFICIARY IN THE NAME OF APPLICANT CERTIFYING THAT GOODS INVOICED STRICTLY COMPLY WITH THOSE MENTIONED IN THE ABOVE PROFORMA INVOICE IN 3 ORIGINALS AND 3 COPIES. Invoice presented by the beneficiary showing: “In the name of applicant CERTIFYING …

See the fireworks MR. OLD MAN created by blogging on WordPress.com. Check out their 2015 annual report. Source: See the #fireworks I created by blogging on #WordPressDotCom. My 2015 annual report.

The WordPress.com stats helper monkeys prepared a 2015 annual report for this blog. Here’s an excerpt: Madison Square Garden can seat 20,000 people for a concert. This blog was viewed about 66,000 times in 2015. If it were a concert at Madison Square Garden, it would take about 3 sold-out performances for that many people to see it. Click here …